Mike Novogratz’s Galaxy Digital Secures $100M for New Cryptocurrency Fund

TLDR

• Galaxy Digital is launching a $100 million hedge fund in Q1 2026 that can take both long and short positions in digital assets
• The fund will invest up to 30% directly in cryptocurrencies, with the rest in financial services companies affected by blockchain, AI, and regulatory changes
• Galaxy has received $100 million in commitments from family offices, high-net-worth investors, and institutional backers
• The move comes as Bitcoin has dropped roughly 28% from its October peak and trades near $90,000
• Galaxy Digital, which manages $17 billion in digital assets, reported $505 million in profit in Q3 2025

Mike Novogratz’s digital asset investment firm Galaxy Digital is launching a new $100 million hedge fund in the first quarter of 2026. The fund will target opportunities in the volatile digital assets market through both long and short positions.

Galaxy Digital manages roughly $17 billion in digital assets. The firm has secured $100 million in commitments from family offices, high-net-worth investors, and institutional backers according to sources familiar with the matter.

The hedge fund will invest up to 30% of its portfolio directly in cryptocurrencies. The remaining portion will focus on financial services companies affected by blockchain, artificial intelligence, and regulatory changes.

Joe Armao will oversee the fund. He said the strategy is designed to identify both winning and losing companies across the digital finance landscape.

Armao stated that while the “up only” phase of the crypto market may be ending, Bitcoin and other major cryptocurrencies remain strong long-term plays. This outlook depends partly on whether the U.S. Federal Reserve continues cutting interest rates.

The fund aims to profit from market swings rather than relying solely on price appreciation. This approach differs from traditional crypto investment strategies that only bet on rising prices.

Novogratz Returns to Hedge Fund Roots

Novogratz originally envisioned Galaxy as a hedge fund when it launched nine years ago. The firm pivoted toward asset management and investment banking due to market instability.

Galaxy Digital went public on August 1, 2018. It became one of the earliest publicly traded crypto investment firms in the U.S.

The company reported $505 million in profit in the third quarter of 2025. This performance comes as the broader crypto market faces challenges.

Launch Timing and Market Conditions

The fund launch comes as Bitcoin has dropped roughly 28% from its October peak. Bitcoin is currently trading near $90,000 following a turbulent start to the year.

Galaxy Digital indicated the fund may launch with additional financial commitments beyond the initial $100 million raised. The firm is scheduled to begin operations in the first quarter of 2026.

At press time, Galaxy Digital stock was down 1.19% and trading at $31.72.

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